Europe's Robotaxi Race Just Got a New Contender -- and It's Not Who You Think

Stellantis NV STLA is stepping into Europe's driverless future with a surprising partner China's Pony AI Inc. PONY. The automaker has struck a deal with the Guangzhou-based robotaxi firm to begin testing electric autonomous vans in Luxembourg, using a Peugeot e-Traveller as the first model. The trials, set to start in the coming months, will focus on Level 4 self-driving systems vehicles capable of handling all driving tasks under defined conditions, though human intervention remains an option. Stellantis STLA shares edged 1.4% higher to $10.37 in New York trading, while Pony AI slipped 2.7% to $19.87.

For Pony AI, a Toyota-backed pioneer in China's robotaxi race, this marks its first partnership with a major Western automaker and possibly a gateway into Europe's tightly regulated mobility market. The companies said the goal is to accelerate the development and deployment of robotaxi fleets across the continent, with plans to expand beyond Luxembourg as early as next year. Pony AI's growing footprint in Singapore through prior collaborations hints at its broader ambition to export China's autonomous driving playbook abroad.

The deal lands in the middle of an escalating global contest for self-driving dominance. Alphabet's Waymo and Baidu's Apollo Go are gearing up to launch robotaxi services in London, while Uber Technologies Inc. and Beijing-based Momenta Technology Co. are planning similar tests in Munich by 2026. Stellantis' move could be more than a tech experiment it could be a strategic hedge, blending Europe's industrial muscle with Asia's software edge to capture the next wave of autonomous mobility.